Qualcomm Raises its Outlook for the Next Financial Quarter

Qualcomm has raised its financial guidance for the third fiscal quarter ending June 28, 2009. The company now says that revenues are estimated to be US$2.67 to US$2.77 billion compared to its prior guidance range of $2.40 to $2.60 billion.

Operating income is now estimated to be US$1.06 to $1.11 billion pro forma, compared to prior guidance range of $800 to $900 million; and estimated to be $830 to $880 million in accordance with generally accepted accounting principles (GAAP), compared to the prior guidance range of $550 to $650 million.

CDMA-based Mobile Station Modem shipments: estimated to be 94 to 95 million units compared to prior guidance range of 87 to 92 million units. March quarter CDMA-based device shipments are also estimated to be 109 to 111 million CDMA units (CDMA2000 and WCDMA), compared to the prior guidance of range of 107 to 112 million units.

"We are very pleased to raise our fiscal third quarter guidance, reflecting the strong worldwide demand for wireless broadband powered by 3G CDMA," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our increased guidance reflects stronger than expected demand for more data-capable chipsets and increased licensing revenues driven in part by advanced 3G network upgrades. While some chipset demand for developing markets has shifted to the fourth fiscal quarter and demand remains generally strong, due to the current economic environment we remain cautious and currently project a modest sequential decrease in chipset shipments."

The outlook does not include provisions for the consequences of injunctions, damages, or fines related to any pending legal matters.

The company also refused to provided Earnings per Share (EPS) guidance, due in part to uncertainty concerning on unrealized losses on marketable securities that could be recognized in the third fiscal quarter.

Posted to the site on 11th June 2009